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Gifts to an UTMA Account for the Child of an Social Security Beneficiary

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  • 02-14-2017, 11:43 AM
    as42dcwsdf2
    Re: Ss Benefits and Ugma Account
    Taxing Matters, thank you and if I may ask another question.

    My child received a SSA-1099. If the SSI benefits to the child are not taxable income then why would there be a 1099 issued?

    Regards
  • 02-14-2017, 04:02 PM
    Mercy&Grace
    Re: Ss Benefits and Ugma Account
    Quote:

    Quoting Taxing Matters
    View Post
    They are the child’s benefits, not your benefits, and thus not includable on your tax return. Moreover, the SSI benefits the child is receiving is not taxable income to the child, either.

    Taxing Matters, if the parent claims the child as a dependent wouldn't the total income be what decides if taxes have to be paid ?
  • 02-14-2017, 04:31 PM
    Taxing Matters
    Re: Ss Benefits and Ugma Account
    Quote:

    Quoting as42dcwsdf2
    View Post
    Taxing Matters, thank you and if I may ask another question.

    My child received a SSA-1099. If the SSI benefits to the child are not taxable income then why would there be a 1099 issued?

    Regards

    Assuming your daughter is unmarried, then the Social Security benefits will only be taxable if the total of (1) one-half her Social Security benefits plus (2) all her other income together exceed $25,000. So, unless she had some significant income aside from the Social Security, none of the Social Security is taxable. See IRS Publication 915 which explains all this.
  • 02-14-2017, 06:21 PM
    Mercy&Grace
    Re: Ss Benefits and Ugma Account
    If the child is married, the child wouldn't be eligible for benefits off of the parents record.
  • 02-15-2017, 04:01 AM
    llworking
    Re: Ss Benefits and Ugma Account
    Quote:

    Quoting Mercy&Grace
    View Post
    If the child is married, the child wouldn't be eligible for benefits off of the parents record.

    Mercy, the point is that the children's benefits are treated as the child's income for tax purposes, not the parent's income. Therefore, they would only be taxable to the child under the normal calculation to determine whether or not SS benefits are taxable. Taxing Matters was describing the normal calculation for a single person.
  • 02-15-2017, 01:50 PM
    Mercy&Grace
    Re: Ss Benefits and Ugma Account
    llworking, I was thinking about people that may read this thread in the future. I didn't want them to think a "child" that was married could receive these benefits. I apologize for any confusion
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